Investors Archives - McKee Smith, Realtor®

February 16, 2023February 13, 2023

Why Coppell and Lewisville Should be at the Top of Your Home Buying List

Coppell and Lewisville are two fantastic cities that have so much to offer to those looking for a new place to call home.

Are you thinking about buying a new home? If so, have you considered the Coppell, Texas, or Lewisville, Texas, area? These two cities have so much to offer for those looking for a new place to call home. In this blog post, we’ll take a closer look at why these two cities are the perfect place for you to buy a home this spring.

First of all, let’s talk about the location. Coppell and Lewisville are both located in the Dallas-Fort Worth Metroplex, which means they are conveniently located near all the big city amenities while still maintaining a small-town feel. This is the best of both worlds – you can enjoy the peace and quiet of a small town while still having easy access to all the shopping, dining, and entertainment options you could want.

Another great reason to buy in Coppell or Lewisville is the strong housing market. Both cities have seen steady growth in home values in recent years, and experts predict that this trend will continue. This means that buying a home in these areas is a smart investment for the future.

One of the best things about living in Coppell or Lewisville is the amazing school district. Both cities are home to top-rated schools that are known for their excellent academic programs and dedicated teachers. If you have kids, this is a big plus as a good education is one of the most important things you can provide for them.

Another reason to consider buying a home in Coppell or Lewisville is the strong sense of community. These cities have a close-knit, welcoming atmosphere that makes it easy to meet new people and get involved in local activities. Whether you’re interested in sports, arts and culture, or community service, there’s something for everyone in these two cities.

Finally, let’s talk about the weather. Coppell and Lewisville enjoy a mild climate with warm summers and cool winters. This makes it a great place to live all year round, as you can enjoy outdoor activities and recreation no matter what the season.

So why buy a home in Coppell or Lewisville this spring? Spring is a great time to buy because there are typically a lot of homes on the market, which means you have a better chance of finding your dream home. Additionally, spring is a time of renewal, which makes it a great time to start fresh in a new home.

In conclusion, Coppell and Lewisville are two fantastic cities that have so much to offer to those looking for a new place to call home. From the strong housing market and top-rated schools, to the welcoming community and mild climate, these two cities have it all. If you’re ready to make the move, now is the time to do it.

If you’re interested in buying a home in Coppell or Lewisville, please don’t hesitate to contact McKee Smith, REALTOR®. With years of experience in the area, McKee is the perfect person to help you find your dream home.

So why wait? Click this contact form link today and start your journey toward your new home in Coppell or Lewisville!

January 31, 2023January 26, 2023

Steps to buying a home in the Dallas Fort Worth area

Buying a house in Dallas Fort Worth can be a daunting task, but by following these steps, you can make the process as stress free as possible.

Purchasing a home is one of the biggest decisions you will make in your life. It’s a long-term investment, and the process can be overwhelming, especially for first-time homebuyers. If you’re looking to buy a house in the Dallas – Fort Worth area, the following steps will help you navigate the process and make it as smooth and stress-free as possible.

Step 1: Determine Your Budget and Get Pre-Approved for a Mortgage

Before you start looking at houses, it’s important to determine your budget and get pre-approved for a mortgage. Knowing your budget will help you narrow down your search and avoid wasting time looking at properties that are out of your price range. Getting pre-approved for a mortgage will also give you a better idea of how much house you can afford and will make you a more attractive buyer to sellers.

Step 2: Research Neighborhoods and Find a Real Estate Agent

Researching neighborhoods is an important step when buying a house. You’ll want to find an area that meets your needs in terms of location, amenities, and school district. Since the Dallas Fort Worth area extends from Azle to Cleburne to Waxahachie to Seagoville to Royse City to McKinney to Denton, you have a huge area to consider!

A licensed REALTOR® like McKee Smith can help you find properties that fit your budget and needs. He knows the neighborhoods and can help you find the place that best fits your specific needs.

Step 3: Browse Listings and Attend Open Houses with your REALTOR®

Once you have a general idea of what you’re looking for, it’s time to start browsing listings and attending open houses. This will give you a sense of the housing market and help you get a feel for different properties. Take note of what you like and dislike about each property so you can narrow down your search later. It’s a great idea to go to open houses with your REALTOR® so he can point out details and see exactly what your preferences are!

Step 4: Make an Offer on a Property

When you find a property that you’re interested in, make an offer. McKee Smith will help you negotiate the price and terms of the sale.

Step 5: Hire a Home Inspector

Once your offer is accepted, it’s important to hire a home inspector to ensure the property is in good condition. A home inspector will check for any issues with the property, such as structural problems, electrical issues, and plumbing problems. This step is crucial to make sure you’re aware of any potential issues before you close on the sale.

Step 6: Close on the Sale and Move into Your New Home

The final step is to close on the sale and move into your new home. This can be a complicated process, but mcKee Smith, REALTOR®, will help guide you through it. Once the closing is complete, the house is officially yours and you can start the process of making it your own.

Buying a house in Dallas Fort Worth can be a daunting task, but by following these steps, you can make the process as smooth and stress-free as possible. It’s important to consult with a REALTOR® like McKee Smith, a mortgage lender, and/or attorney for specific information and help. Remember to take your time and don’t rush into any decisions. With the right research, preparation, and guidance, you’ll be able to find the perfect home for you and your family.

January 19, 2023January 18, 2023

What Are Your Real Estate Goals for 2023?

Lots of people set new goals for the New Year. What are YOUR real estate goals for 2023?

Follow this link to get a no obligation consultation https://bit.ly/McKeeRealEstateGoals2023

We’ve officially welcomed another New Year, and it’s time to check in on what that means for you!

Hey there, McKee Smith, realtor and senior real estate specialist with competitive edge realty here.

For many, the new year is a chance to get back on track and set our sights on creating better lives for ourselves.

It’s when we start thinking about the goals we want to tackle – from health-related habits to picking up a new hobby.

One often overlooked resolution is focusing on real estate ambitions. So I’m here today to ask… What are YOUR real estate goals for 2023?

Are you ready to build that dream home you’ve always wanted?

Would you like to downsize to something smaller or settle into that “forever home”?

Or are you ready to put your hard-earned money to work by investing in a rental property?

Whatever your goals are, now is the time to create a plan of action. I’m here to help you do it!

All you need to do is click this link and answer three quick questions, so I know best how to serve you this new year. I look forward to hearing about your real estate plans for the year! I’m excited to help you achieve them! Let’s chat and make it a year to remember!

McKee Smith, REALTOR®, has been selling and buying homes in Dallas and Fort Worth for many years. He knows and understands the intricacies of the DFW housing market. He works out of his home in Coppell, Texas. He is a Senior Real Estate Specialist® (SRES®) and new home construction buyer representation certified. Remember – McKee has the keys to selling your home!

November 18, 2022November 16, 2022

Home Owners Need Resources

I want to be your “go to” person for anything related to real estate! If you’ve got a question, I have or can find the answer!

Managing an asset worth hundreds of thousands of dollars is a responsibility that requires attention to details such as timely payment of the mortgage, home repairs and maintenance, upkeep, and oversight of financial issues including taxes, insurance, and other things.

Depending on how long you’ve been a homeowner, you may have faced some of the decisions common to homeownership. Occasionally, there could be something new that you haven’t had to deal with in the past. This is where having a resource you can rely on becomes valuable.

During the buying or selling process, it is natural to turn to your agent for information and advice but during those periods in between where do you go for counsel? Sure, you can turn to the Internet but that may not be the best place to get advice for your situation.

We encourage you to think of us as your “source of real estate information”; someone you’re comfortable with asking a question and confident that you’ll get good advice. We not only want to be there for you when you buy or sell, but all the years in between.

By helping you with the day-to-day decisions of homeownership, we believe we can develop relationships that will lead to future sales when you move again, as well as recommendations to your friends who need the services of a trusted real estate professional.

Whether you simply need the recommendation of a service provider, a trustworthy mortgage professional, an estimate of your current market value, or advice on what kind of improvements are best to consider, we’re happy to share that information with you.

Just a few of the kinds of questions we get almost every week:

Can you recommend a good (plumber, painter, handyman, etc.)
What is the current value of my home?
How do I challenge a property tax assessment?
When should a homeowner refinance?
How often should we update our personal home inventory?

I want to be your “go to” person for everything to do with real estate. If you have a real estate question, please call me at (972) 333-8638. If I don’t have the answer, I’ll find it for you or point you in the right direction.

November 16, 2022November 16, 2022

Securing Your Retirement

Retirees want a safe and secure investment whose income will not be eroded by inflation. Single-family homes meet those requirements.

Social Security was established, on August 14, 1935, to take care of the country’s elderly in their retirement years. Today, about 65 million or 1/6 of Americans collect benefits and the average monthly retirement amount received in January 2022 was $1,614 per month or about $19,370 per year.

This annual Social Security benefits exceed the 2022 Federal poverty level of $13,590 for individuals and $18, 310 for a family of two but from a practical level, it is nowhere near enough to be comfortable in your “Golden Years.”

Every adult in the workforce, can go to SSA.gov to find out what to expect to receive based on their planned retirement age. Since it probably won’t be the amount you need to retire comfortably, at least you’ll know how short you’ll be so that you can devise an investment plan.

There’s a quick formula to estimate the investable assets needed by retirement to generate a certain income. The target annual income is divided by a safe, conservative yield to determine the investable assets needed.

A person wanting $100,000 annual income generated from a 5% investment would need investable assets of $2,000,000. If a person had $500,000 now, they would need to accumulate $1.5 million more by the time they retire. A 50-year-old wanting to retire at 65 would need to save about $100,000 a year for 15 years.

If trying to save an extra $100,000 a year seems impossible, consider the leveraged growth available in rental real estate. The use of borrowed funds can contribute to the yield earned by the investment. By reinvesting the positive cash flows from the rental to retire the mortgage, the home could be paid for by retirement, providing more cash flow when it is needed the most.

One of the bright spots in investments is rental real estate which is also open to self-directed retirement savings. Single-family homes offer high loan-to-value mortgages at fixed interest for long terms on appreciating assets with tax advantages and reasonable control. Price appreciation alone has outpaced inflation for the last fifty years.

Many Americans have participated in Individual Retirement Accounts, SEPs, 401(k)s or other types of retirement that would supplement the Social Security benefits. Many of these are invested in mutual funds which have lost about 20% in value in 2022. With inflation at a 40-year high, many retirees and future retirees are concerned about their income from these investments.

Retirees want a safe and secure investment whose income will not be eroded by inflation. Single-family homes, in predominantly owner-occupied neighborhoods, meet those requirements. Home prices have experienced double-digit appreciation in the past two years and around 5% for the last five decades.

Decade	Home Prices Average Annual Increase	Consumer Prices Average Annual Increase
70’s	9.9%	7.2%
80’s	5.5%	5.6%
90’s	4.1%	3.0%
00’s	2.3%	2.6%
10’s	4.9%	1.8%
20 + 21	12%	3%
		Source: NAR & Bureau of Labor Statistics

Increased mortgage rates coupled with rising home prices have sidelined many would-be purchasers who want to be in a home. Since they cannot buy at this time, the next best alternative is to rent a home. This has added to the increased demand for single-family homes in good neighborhoods which has resulted in increased rents. While this isn’t good news for tenants, it is for investors.

Investing in rental real estate could be a way for you to increase your retirement income and grow your net worth while avoiding the volatility of the stock market. Current homeowners already are aware of the value of homes as well as the maintenance they require.

To get more information about single-family homes for rentals, download our Rental Income Properties guide. You can also schedule a time with me to get answers to any questions you may have and find out about what is available now.

McKee Smith, REALTOR®, has been helping people like you sell and buy homes in the DFW area for many years. He is very knowledgeable about the housing market in Dallas and Fort Worth. He works out of his home in Coppell, Texas. He is a Senior Real Estate Specialist® (SRES®) and new home construction buyer representation certified. Remember – McKee has the keys to selling your home!

September 14, 2022September 7, 2022

Are Home Prices and Rates Going To Continue To Rise

Make an appointment with your real estate professional to get the facts on what your home is worth, the mortgages available, and the logistics to put it together for your best advantage.

One of the most talked about questions in the real estate market has to do with “Will prices continue to rise now that interest rates have increased dramatically this year?”

It is understandable to think that if the Federal Reserve is using interest rate increases to slow consumer demand, that it would also slow homebuyer demand to moderate prices. Unfortunately for would-be homebuyers, it isn’t the case. High inflation, strong economic growth, low unemployment, and increased wage growth have been associated with high home price appreciation.

In a recent newsletter from First American, Chief Economist, Mark Fleming stated that historically, 90% of total inventory is from existing homes and homeowners are not moving as often as in the past. Prior to 2007, the average tenure was five years. After the housing crisis, between 2008 and 2016, the length of time spent in a home went to eight years.

Lawrence Yun, Chief Economist with the National Association of REALTORS® when talking about the May 2022 statistics: “Nonetheless, homes priced appropriately are selling quickly and inventory levels still need to rise substantially … almost doubling … to cool home price appreciation and provide more options for home buyers.” Median sales price rose to a new high of $403,800, up 10.8% from July 2021, while sales are down 20% year over year and inventory increased slightly to 3.3 months from 2.6 months in July of 2021.

In the beginning of 2022, Fannie Mae, Freddie Mac and NAR predicted home price appreciation would be 7.6%, 6.2%, and 5.1% for the year. Their revised forecast has been increased to 16%, 12.8%, and 11.5%. Buyer demand still exceeds inventory levels which is driving prices higher.

While the Fed does not set mortgage rates, it does determine the Fed Funds Rate which is charged by banks to each other for overnight funds. The increases often affect the U.S. Treasury rates to increase and there is generally a reaction when the 10-year U.S. Treasury Note yields increase for the 30-year mortgage rates to increase also.

The National Association of REALTORS®, on their website, states “The Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.” The Index uses the 30-year fixed rate mortgage as provided by Freddie Mac’s Primary Mortgage Market Survey (PMMS).

Mortgage rates have gone up over 2% in the first half of 2022. That dramatically affects the affordability of the home even if the price didn’t increase, which it did. A $360,000 mortgage at 3.05% in December 2021 would have a principal and interest payment of $1,528 for 30-years. At 5.22% as of August 11, 2022, the P&I payment is $1,981 or a difference of $453 dollars or a 30% increase.

As of May 2022, homeowners are now staying in their homes 10.6 years. Part of the reasons can be contributed to the pandemic, but a large degree is attributed to the lack of inventory. Existing homeowners can sell their home for premium prices and in unusually short time frames, but the problem is finding a home to replace it.

The demand for housing still exceeds the supply and price are continuing to rise, although, maybe not as the same pace as 2021. Many economists predicted that price appreciation would slow but CoreLogic reported “Home prices nationwide, including distressed sales, increased year-over-year by 20.9% in April 2022 compared with April 2021. In the same report, CoreLogic predicted “…home prices are forecast to increase on a year-over-year basis by 5.6% from April 2022 to April 2023.”

Another frequent question homeowners have is whether to wait to see if prices moderate and interest rates decline. The probability is more likely for prices to continue to increase along with mortgage rates. The consequences of waiting, in hopes of lower prices and rates, could totally price a person out of the market for the home they want.

Using a $400,000 home that could be purchased today at 5.22% on a 90%, 30-year mortgage, the P&I payments would be $1,981. If the price appreciated only 5% in the next year and the mortgage rates were to go up by 1%, the payment would increase by $339 a month. If a person stayed in the home for 7 years, the increased cost would be $28,458 and if they stayed for full term, it would cost them $121,965 more by waiting.

Increases in rates and prices have forced some people out of the market, at least temporarily. For the fortunate ones, who can still afford to buy, even with the increases, acting now could save them tens of thousands and maybe hundreds of thousands depending on the price of the home.

Make an appointment with your real estate professional to get the facts on what you home is worth, the mortgages available, and the logistics to put it together for your best advantage.

McKee Smith, REALTOR®, has years of experience in the DFW area housing market. He knows the many unique features of Dallas and Fort Worth area home sales. He works out of his home in Coppell, Texas. He is a Senior Real Estate Specialist® (SRES®) and new home construction buyer representation certified. Remember – McKee has the keys to selling your home!

June 30, 2022June 14, 2022

Become A Victim Of Inflation Or Benefit From It

Inflation is here. How you react and what you do will make a difference in how it affects you!

In inflationary times like these, currently, the highest in 40 years, the purchasing power of your money diminishes each day; essentially, buying you less. The biggest threat is to be without capital assets, like a home, that is benefiting from the increase in prices.

Your money buys less gasoline now, than it did a year ago, by close to 50%. Beef prices are up about 20% since last year. Used cars are about 35% more expensive than they were a year ago. Mortgage rates are near 5% after reaching their lowest of 2.65% in January 2021.

And then, there is the price of houses. CoreLogic reports that home prices increased year over year by 20% in February 2022. Their Home Price Index indicates an annual five percent increase in prices from 2014 to 2021.

For many people, the American dream of owning a home is slipping away. Adjusting your expectations for the perfect home and when you expect to achieve it, can be a legitimate, long-term strategy for making the dream come true. Delaying the gratification of getting everything you want in a home now and making compromises that would allow you to stair-step your way into the “forever home” could be the plan to incrementally reach your goal.

Owning a home in today’s market, even if it isn’t the ultimate home, provides a significant hedge against inflation. Not only is the home appreciating faster than the rate of inflation, but the mortgage on the home also produces leverage that increases a homeowner’s return on their equity.

Homeowners have both the home’s appreciation and its amortization working in tandem to increase their equity. Money in a bank account or the stock market can’t compare to the potential.

$40,000 invested in a certificate of deposit earning 1% would be worth $42,040 in five years. If the same amount was invested in the stock market that earned 6% annually, it would be worth $53,529. However, if the $40,000 were invested in a $400,000 home, with a mortgage at 5% for 30 years, that appreciated at 5% annually, the equity would be close to $180,000 at the end of the same five-year period.

Connect with me and let’s put together a plan to help you benefit from inflation.

June 30, 2022June 22, 2022

When Are Negotiations Over?

Experienced agents know negotiations continue through inspections, repairs, financing, contingencies and much more!

The primary negotiation in a home purchase takes place when the contract is agreed upon which includes the price, closing and possession. With inventory down over 19% in the past year and multiple offers being more of the norm than the exception, the first round of negotiations can be challenging.

Buyers and sellers alike feel relieved once it has resulted in an agreement, but experienced agents know there is more to come if there are contingencies for financing, inspections, or other things. The competition for the home may be so tough that the buyer waived their rights for what would be normal contingencies.

Financing is one of the most common contingencies in normal situations but when multiple offers are involved, the cash offers tend to have the advantage. If you don’t have the resources to make a cash offer, the next best position is to be pre-approved with a commitment letter from the lender. Arrange for the lender to confirm the pre-approval directly with the listing agent prior to the listing agent presenting the offer.

There have been buyers who know they don’t have the cash to close and apply for a mortgage anyway and try to reinsert the provision outside of the contract. Experienced listing agents will advise the seller to have the buyer provide proof of funds necessary to close and verify that they do indeed exist.

The purpose of an inspection is for the buyer to receive an objective evaluation of the condition of the home and its components to identify existing defects and potential problems. The expense for inspections can be several hundred dollars and it’s reasonable for buyers not to want to spend the money before they find out if they can come to terms with the seller. From a different perspective, sellers want to know quickly if the buyer is going to reject the home due to the inspections because they could be losing time. For that reason, inspection time frames are limited to a few days from acceptance of the offer.

Sometimes, buyers will expect sellers to make all the repairs listed on the report and this is where the second round of negotiations begins. If the seller refuses, the negotiations can go back and forth until the other party accepts the offer on the table.

When purchasing a new home from a builder, it is expected for everything to be in working order; after all, it is new. However, it is reasonable to expect that existing homes, that are not new, have a different standard. While it’s understandable that buyers would want to be aware of major items that are not in “working order”, normal wear and tear of components based on their age should be expected.

In a highly competitive seller’s market, buyers might do whatever they can to get their contract accepted, realizing that there is another place to negotiate when they’re not competing with other buyers’ offers to purchase.

The negotiations involved in a home purchase are not complete until the buyer and seller have signed the papers and the title has passed to the buyer. Up until the closing is finished, any item that comes up could prolong the negotiations.

For this to be a WIN-WIN situation, both seller and buyer must feel good about the negotiations that led to the transaction closing. Neither party should feel that the other party had an unfair advantage over them.

March 7, 2022February 10, 2022

Alternative Investments

For most owners, a home represents their largest financial asset. That familiarity becomes a natural bridge to decide to invest in rental property.

In a recent article, The Wall Street Journal reported that investors have rarely been this flush with cash. The economic uncertainty due to the pandemic and the volatility of the stock market has caused assets in money-market funds to increase to approximately $4.6 trillion, the highest level on record according to Refinitv Lipper.

The question becomes should an investor be “out of the market” until things settle down or should they seek to find alternative investments to produce satisfactory results. Even in the middle of this uncertainty, residential rental property has been a stable performer.

Rents are continuing to increase along with values. Investor mortgages are available at 80% loan-to-value at fixed interest rates for 30-year terms. Most other investments must be purchased for cash or at best, are limited to low loan-to-value loans, at floating interest rates for relatively short time frames.

The use of borrowed funds, especially at today’s low interest rates, contribute to the rate of return and in some cases, increase it. This characteristic is known as leverage.

Income properties enjoy specific tax advantages like long-term capital gains rates lower than ordinary income rates, standard depreciation, which is a non-cash deduction, as well as expensing many big-ticket items in the year purchased.

Tax deferred exchanges are available for investors wanting to avoid the tax due on sale and defer the profit into the replacement property.

One of the most cited reasons people invest in rental homes is that they feel they are more in control. They understand a rental home because it is the same type of property and requires the same maintenance as the home they live in. They can make the decisions to improve it, repair it, what rent to charge and when to sell it. For most owners, a home represents their largest financial asset. That familiarity becomes a natural bridge to decide to invest in rental property rather than something they are less familiar.

If you’d like to know more about the benefits, download the Rental Income Properties guide and call me at to discuss what kind of opportunities are available.

February 16, 2022February 13, 2022

Waiting to buy will cost more!

Mortgage rates have been kept artificially low by the Federal Reserve since the Great Recession in 2010. That is coming to an end!

Mortgage rates have been kept artificially low by the Federal Reserve since the Great Recession in 2010. That is coming to an end! There is a whole generation of people who have never known what might be called normal mortgage rates. And then, most of the rest of the adults in America have forgotten what average rates were in the 50’s, 60’s, 70’s, and especially, in the 80’s when they hit 18.45%.

The bottom of the market was February 2021 with 30-year fixed rates were 2.73%. Current rates, as of February 10^th, according to Freddie Mac, are at 3.69%. Earlier predictions by the National Association of Realtors, Fannie May, Freddie Mac, and Mortgage Bankers Association were that rates would go as high as 4.00% by the end of the year.

Those estimates may be considered low now based on concerns about inflation and the federal government’s efforts to keep it under control. The Fed has announced a series of policy rate increases for the balance of the year. Mortgage lenders, in anticipation of the rate hikes, have already started raising their rates as evidenced in the rates since January 3, 2022.

It is possible that a year from now, 30-year fixed rates could be at 5% or above. This could make a significant difference in a buyer’s payments especially compounded with rising prices.

A $450,000 purchase price today with a 90% fixed-rate 30-year mortgage at 3.69% has a principal and interest payment of $1,862 a month. If things continue to heat up and the mortgage rate goes up by one percent while the price increases by ten percent, a year from now, the home will cost $495,000 and the payment would be $446 higher each month for the term of the mortgage.

Use the cost of waiting to buy to make projections on the price home you want to buy based on your own estimate of what interest rate and appreciation will do in the next year.

Acting now causes the payment to get locked in at the lower rate and the increase in value belongs to the buyer as equity build-up. Unfortunately, with the current state of supply and demand on housing inventory, waiting to purchase moves the bar higher and higher until some buyers will not qualify.

For more information, download my Buyers Guide.